MoD to acquire new India-made tanks, other arms worth Rs 1.4 lakh crore

New Delhi: The defence ministry has cleared the acquisition of Indian-made tanks, warships, radars and aircraft worth over Rs 1.44 lakh crore to meet the requirements of the armed forces.

The Rajnath Singh-led Defence Acquisition Council (DAC) gave the go-ahead for 10 capital acquisition proposals on Tuesday and the respective forces will now be able to initiate the process of inviting proposals from the industry.

A major project cleared by the ministry is the acquisition of new battle tanks that will replace the Russian origin T72 fleet that is currently in service. Termed the Future Ready Combat Vehicle (FRCV), the acquisition will be carried out under the Make in India route with Indian companies bidding to develop and manufacture the tanks.


The Army has a requirement of 1,700 future-ready tanks, with the entire project expected to cost close to Rs 60,000 crore.

The tanks could be brought in three tranches, with each tranche getting the latest equipment and armament available. The acquisition could be carried out under the 'Make 1' process, under which the government funds 70% of the development costs while the industry partner puts in 30%. India already has two types of indigenous tanks -- the Arjun Main Battle Tank that is in service and the Light Tank that is undergoing developmental trials.

"For modernisation of the tank fleet of the Indian Army, the proposal for procurement of Future Ready Combat Vehicles (FRCVs) has been cleared.

The FRCV will be a futuristic Main Battle Tank with superior mobility, all terrain ability, multilayered protection, precision and lethal firepower and real-time situational awareness," defence ministry officials said.

The ministry has also given the go ahead for the procurement of Air Defence Fire Control Radars and a Forward Repair Team (Tracked), which can be used to carry out repairs on mechanised vehicles deployed to forward areas.

The Coast Guard has been given the go ahead to begin the acquisition of three systems -- Dornier-228 aircraft, Next Generation Fast Patrol Vessels and Next Generation Offshore Patrol Vessels.